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Innovation Company is thinking about mark eing a new so rn product. Upfront costs to markerd de elop the product are 91 mil on The
Innovation Company is thinking about mark eing a new so rn product. Upfront costs to markerd de elop the product are 91 mil on The products expected to generata prafts of $1.06 milion per year for ten years The company wil have to provide product support expected to cost 592,000 per year in perpetuity Assume al protts and expenses ocour st he end of the yoar a what the NPV of this rrvestment if the cost or capital is 59%? Sh id the trm undertake the proiect? Repeat theana as lardsoort rates or 1 5% and 14 % respectvoly b. What is the IRR of this investment opportunty c. What does the IRR rule indicate about this investment? a. What is the N respecively V of t "vest t f the cost of ap tal is 5 g%? Sh ld the trm unertake the pro ect? Repeat the analysis tor discount rates of 1.5% and 14.3%, irte costo' captal is 59%, the NPVwil be (Roundtote nearest dolar) Incorrec Enter your anewer in the answer bax and then dick Check Answer. emaining Grar Al Check
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